The Value of Covenants

The premise of covenants is simple; it is to maintain and hopefully increase the value of properties within a given neighborhood. In Mountain Shadows, all properties (single family, patio home, townhome & condominiums) have covenants. However, not all single family homes in Mountain Shadows are within an HOA.

As I often say in jest to my clients, “I love covenants for my neighbors, but I am not as excited of them for myself.” My personal story with the covenants in my Filing (there is no HOA) in Mountain Shadows has to do with my pop-up camper. My family and I had returned from a camping trip and for many reasons (mostly poor excuses) I hadn’t found time to move the pop-up from my driveway back to the storage facility. After the camper had sat in my driveway for a week or 10 days, I received an anonymous letter with the page in the covenants regarding trailers and a hand written note saying “The rest of us are abiding by the covenants, as should you.” My initial reaction was a combination of embarrassment and anger. Embarrassment because I knew better and anger because a neighbor did this anonymously. Even though I think I would have reacted positively to a neighbor talking to me about this, I think the anonymous neighbor did this the proper way. An anonymous letter initially is a great starting point which usually takes care of the infraction.

Covenants protect us from our unintended consequences. If no one had complained about my pop-up in the driveway, I may have decided to store it there permanently. The unintended consequence likely would have been a neighbor or two around me having seen this would likely do the same, and then the campers in the neighborhood would have increased exponentially.

One extreme case I have recently seen in Colorado Springs had to do with a home in a neighborhood (not Mountain Shadows) which did not have covenants. The owner of this particular home started repairing vehicles in his driveway; it started with 1 and progressed to 3 or 4 over time. Then he decided he needed more room to store more vehicles so he tore down his backyard fence and now has at least 10 broken down vehicles. This home is located in a neighborhood with small lots, do you think what this homeowner has done has impacted the home values of those around him? Do you think he has a “neighborly” relationship with his neighbors? This story is still playing out, but because the neighborhood does not have covenants and because this is an extreme case, the neighbors have had to get the City involved.

In this example, if the home were in Mountain Shadows where we have covenants the neighbors within the Filing could have taken action and come to resolution much more quickly. Covenants aren’t just rules about campers, they also include things like fences, exterior paint & finishes, landscaping, etc… With the large number of newly rebuilt homes in our area, the most common complaints we hear have to do with landscaping; not being started/completed or concern with the design.​ Most national research indicates neighborhoods where covenants are enforced home values are 10%-25% higher when compared to a similar neighborhood without covenants. When you consider the average single family home value in Mountain Shadows is around $350,000, that equates to $35,000+. If you have questions about the covenants in your Filing, be sure to check out our website www.MSCAWeb.com and click on Covenants. If you have additional questions, contact our Covenants Coordinator, Dave Buckley at 719.338.0600 or myself at 719.339.3765.